Wij gebruiken een aantal cookies om u de best mogelijke browserervaring te bieden. Door deze website te blijven gebruiken, gaat u akkoord met ons gebruik van cookies. U kunt hier meer lezen over ons cookiebeleid of op de link klikken onderaan iedere pagina van onze website.
The negative sentiment from yesterday’s poor US session has ensured that traders’ screens have been bathed in a red hue throughout the day. No doubt those overseeing the Trade Descriptions Act will be closely monitoring future ‘Super Thursdays’ as this has proven to be anything but.
Other than mortgage lenders, few in the financial markets have acted too strongly on the MPC’s implication that rates could change at the turn of the year. Certainly the recent economic releases from the UK and the committee’s voting give little support to this theory, with the UK GDP forecast being cut back. Throughout the accompanying statement the cooling Chinese economy and struggling oil prices have taken the brunt of the blame as to why we are as yet unready to start the process of interest rate normalisation.
Having now digested how the BoE perceives its ability to raise rates, attention will once again shift to the Fed; institutions still have December as the most likely month for this process to kick in but September still hovers as a distant possibility.
Yesterday’s price action in US equity markets demonstrated how fragile confidence is and with tomorrow seeing the Ecofin meeting in Brussels, plus US inflation figures and Michigan confidence data, it is difficult to postulate a solid reason for why buyers should step in on the last day of the week